*
in 1999 prices** compared to previous yearsSources: U.S.
Department of Commerce; CIA World Factbook; DOE/EIA

III. Oil

Exploration and
ReservesTajikistan has proven reserves of 12 million barrels
of oil, most of which are located in the northern part of the country in
the Leninobod Soghd Region. The national oil company is Tajikneftegaz,
which handles oil exploration, drilling, and production.

Production and ConsumptionIn
2001, Tajik oil production was only 350 barrels per day (b/d). There has
been a long period of production decline since Tajikistan produced 1,311
b/d in 1992. This decrease has been attributed to the 1992-1997 civil war,
economic troubles, and lack of investment in the oil infrastructure.

Tajikistan consumed approximately 29,000 bbl/d of
petroleum products in 2001, of which nearly 100% is imported. Tajikistan
consumes 29,000 b/d of oil products, almost all of which are imported. The
main source is Uzbekistan, which provides 70% of Tajikistan's oil product
imports. An historical summary of petroleum production and consumption in
Tajikistan is shown in Table below:

Petroleum Production and Consumption in
Tajikistan,1992-2001 (in thousand b/d)

RefineriesIn July 2001,
Tajikistan brought its first small oil refinery online at Konibodom. The
refinery has a capacity of 400 b/d, and produces gasoline, diesel fuel,
kerosene, and fuel oil. The production is far too small for the country's
needs, however; Tajikistan still imports almost all its oil as refined
petroleum products.

IV. Natural Gas

Exploration and
ReservesTajikistan has 200 billion cubic feet (Bcf) of natural
gas reserves, comprised of several fields. In 2000, Tajikistan began
operations in the Khoja Sartez field in the southern Khatlon Region, and
has also increased its activity in the Qizil Tumshuq deposit in the
Kolkhozobod District of the southern Khatlon Region. Tajikistan has also
tried to increase its own gas production, in 2000, by exploratory drilling
in the Khatlon region. Apparently, some of the drilling has been
successful enough to interest China in future drilling activities.

Production and ConsumptionThe
total natural gas production for Tajikistan in 2000 was 1.4 Bcf. With its
small domestic production, Tajikistan must rely on imports for 95% of the
natural gas it consumes. An historical summary of natural gas production
and consumption in Tajikistan is shown in Table.

Tajikistan has had continuing problems in paying
for the gas it imports. There is an intergovernmental agreement with
Uzbekistan for a fixed annual quantity, but consumption has been running
ahead of schedule. An additional problem is that only 18% of the gas
consumed in 2001 was paid for by users. As a result of these issues,
Tajikistan has had to cut off nonpaying customers and negotiate with
suppliers for more gas.

Natural Gas PipelinesThere are
natural gas pipelines from Uzbekistan to Dushanbe, and under a barter deal
with Uzbekistan, gas is exported from Uzbekistan to Tajikistan in exchange
for transit across Tajikistan for a rail transport corridor and a natural
gas pipeline.